CDW Corp (CDW)

Short-term

Turnover ratios

Activity ratios provide insights into how efficiently a company manages its assets and liabilities to generate revenue.

1. Inventory Turnover: CDW Corp's inventory turnover has shown a generally increasing trend over the years, from 20.08 in 2020 to 27.09 in 2024. This indicates that the company is selling its inventory more frequently, which can be a positive sign of effective inventory management.

2. Receivables Turnover: The data shows that CDW Corp has not provided information on its receivables turnover for the years under consideration. Without this information, it is difficult to assess how efficiently the company is collecting payments from its customers.

3. Payables Turnover: Similarly, CDW Corp has not disclosed its payables turnover, making it challenging to evaluate how quickly the company is paying off its suppliers.

4. Working Capital Turnover: The working capital turnover ratio has fluctuated over the years, with a peak at 16.92 in 2023. This ratio indicates how effectively the company is utilizing its working capital to generate sales. A higher ratio suggests efficient use of working capital resources.

In conclusion, based on the available data, CDW Corp appears to be effectively managing its inventory turnover and working capital turnover. However, the lack of information on receivables and payables turnover limits a comprehensive analysis of the company's overall activity efficiency.

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Average number of days

Based on the provided data for CDW Corp's activity ratios, we can analyze the following:

1. Days of Inventory on Hand (DOH):
- CDW Corp's DOH has shown a decreasing trend over the years, from 18.18 days in 2020 to 13.47 days in 2024. This indicates that the company has been managing its inventory efficiently by holding lower levels of inventory relative to its sales.

2. Days of Sales Outstanding (DSO):
- The data provided does not include information on Days of Sales Outstanding, which measures how quickly a company collects its accounts receivable. Without this data, we are unable to analyze CDW Corp's effectiveness in collecting payments from customers.

3. Number of Days of Payables:
- Similar to DSO, the data provided does not include information on the Number of Days of Payables, which reflects how long a company takes to pay its suppliers. Without this data, we cannot assess CDW Corp's payment practices and relationships with suppliers.

In summary, CDW Corp has shown improvement in managing its inventory efficiently over the years based on the decreasing trend in Days of Inventory on Hand. However, additional information on Days of Sales Outstanding and Number of Days of Payables would provide a more comprehensive analysis of the company's overall activity and liquidity management.

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Long-term

The fixed asset turnover ratio measures the efficiency of a company in generating sales revenue from its investment in fixed assets. CDW Corp's fixed asset turnover ratio has shown fluctuations over the years, starting at a high of 105.23 in 2020, dropping to 59.25 in 2021, increasing to 125.79 in 2022, and then data being unavailable for 2023 and 2024.

A high fixed asset turnover ratio indicates that CDW Corp is effectively utilizing its fixed assets to generate sales. The increase from 2021 to 2022 suggests improved efficiency in utilizing fixed assets to drive sales.

The total asset turnover ratio measures the ability of a company to generate sales revenue in relation to its total assets. CDW Corp's total asset turnover ratio has also varied, starting at 1.98 in 2020, declining to 1.58 in 2021, increasing to 1.81 in 2022, and then decreasing to 1.61 in 2023 and to 1.43 in 2024.

A decline in the total asset turnover ratio may indicate that the company's sales are not keeping pace with its asset base. The decrease from 2022 to 2024 raises concerns about the company's efficiency in generating sales revenue in relation to its total assets.

In summary, while the fixed asset turnover ratio of CDW Corp showed improvements over the years, the total asset turnover ratio experienced fluctuations and declines, indicating potential inefficiencies in utilizing total assets to generate sales revenue. Further analysis and monitoring of these ratios would be warranted to assess the company's long-term asset management performance.